University of South Alabama University of South Alabama USA Home   Web Index   Search   Directories   FAQ

Tax Accounting

Division of Finance
and Administration

Our Goals
Education Tax Credits
Honoraria Payments to Foreign Visitors
Sales Tax
Charitable Contributions to the University
Employee or Independent Contractor?
Unrelated Business Income Tax
Tax Accounting Home
Finance and Administration Home
USA Home

Honoraria Payments to Foreign Visitors
On October 21, 1998, President Clinton signed into law the American Competitiveness and Workforce Improvement Act ("ACWIA").
AS LONG AS the visitor will be participating in the activity at USA no longer than nine (9) days, Section 431 of the ACWIA law permits educational and nonprofit research institutions to pay reimbursements for expenses and honoraria to international visitors engaged in short-term academic activities holding either B-1 or B-2 visas or admitted into the U.S. under the Visa Waiver Program classification WB or WT.
An Invitation for Visitors Engaged in Academic Activities form must be sent to the visitor prior to his or her trip to the University.
For visitor in the United States in B-1, B-2, combined B-1/B-2, WB, WT, and combined WB/WT status, a Declaration by Visitors Engaged in Academic Activities Form must be completed.

Click on the arrow to the left to select the appropriate form, in PDF format.  

Here is a short Q & A to give you the basics on how to use this new law.
1. Who is allowed to receive reimbursements and honorarium payments under the new "B Honorarium" rule?
Anyone who, while in "B" visa classification, engaged in academic activities at an academic institution or nonprofit research institution. The activity can last no longer than nine days. Visitors are limited to six such reimbursements or honoraria payments in a six-month period.
2. What is "B" visa classification? How do I recognize it?
"B" covers all of the following classification: B-1; B-2; combined B-1/B-2; WB; WT; and combined WB/WT. One of those notations must appear on the Form 1-94 card, Arrival/Departure Record, that is normally stapled into the passport.
3. How is this different from what we were doing before?
Under the old law we could reimburse documented expenses only to those admitted in B-1 or WB, "visitors for business," status. We could not reimburse expenses for those in B-2 or WT, "visitors for pleasure" status. No one could be paid an honorarium. Under the new law, all of these kinds of visitors may receive both reimbursement for expenses and payment of honoraria. Again, this applies ONLY if the conditions outlined in Question #1 are present. If the conditions outlined in Question #1 are not met, please refer to Question # 9.
4. How do I document the "B Honorarium" classification for the USA Business Office so they can authorize expense reimbursement and honorarium payments?
Here is a checklist of things the department MUST do before or when an international guest arrives at USA.
5. What about the Canadians? Sometimes they come in and have absolutely no documentation. They often don't even carry or have visas.
It is true. Canadians are not required to carry or have visas and often the US INS officers at the border just wave them on through. To cross the border they must carry some form of identification that confirms their Canadian citizenship. Canadians often carry a card version of their birth certificate. You are allowed to accept a document other than a passport that confirms Canadian citizenship. Regarding the I-94, under INS regulations, any Canadian citizen who is admitted without getting a Form I-94 is presumed to be in the US in "B" status.
6. How will I know all this? How will the visitor know all this? Who is going to collect all this information?
To make this as easy as possible for departments and for the international guests, please see attached forms. You should send it to the visitors as invitations and then help them complete the declarations after they arrive at USA. Visitors must make their own declaration about their prior activities. The department can and should confirm only what we know about this visit to USA. The department is responsible for making sure the form is completed, for making the necessary photocopies, and for helping visitors apply for the SSN or ITIN if necessary. The department is not responsible for confirming other visits or activities.
7. Do I still need to request J-1 visas for any of my guest lecturers? Can I just forget about doing that now?
Those people who meet the criteria (see Q1, Q2, and Q4 above) do not need the J-1. The "B" visitor's status is much easier for international scholars to obtain and you do not have to do the paperwork for the J-1. However, any activity that will be over nine days or any activity that puts the scholar over the six-in-six-months limit does not qualify for reimbursement or honorarium payments. Those scholars still will need J-1 status. Also, in any situation where the department or the scholar prefers the J-1 status, the current procedure for such will be followed. If J-1 status is needed, contact the Office of Enrollment Services. (B-1/WB see Question #9)
8. What's the catch? This seems too good to be true. What do I need to look out for?
You are right. It is never as easy as it looks. Problems can occur in the following situations.
9. If the "B Honorarium" rules do not work for me, what are the existing regulations related to B-1/B-2 visa holders?
Foreign nationals entering in B-1/WB status may ONLY be reimbursed for expenses. No honorarium may be paid. Individuals in B-2/WT status CANNOT be reimbursed for expenses or paid honoraria.
10. What other procedures must the department follow?

The University's Form PR 99615 "Authorization to Provide Services" must be completed and sent to the Business Office.

Official reports and documents for the University of South Alabama faculty and staff are available in Adobe .PDF format. If you already have the Adobe Acrobat Reader you're all set to download. If not, you can download the FREE Acrobat Reader by clicking the graphic below:
Get Acrobat Reader
University of South Alabama   Contact Us
Assistive Options

Top of page

Assistive Options

Open the original version of this page.

Usablenet Assistive is a Usablenet product. Usablenet Assistive Main Page.